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AAPL Off With Markets
The market is in the toilet as the jobs report misses badly and unemployment falls to 8.1%. Shares of AAPL continue to slide, down over 1%. Upcoming events include Tim Cook’s keynote at the D10 Conference on May 29 and Apple’s developer conference (WWDC) is slated to start June 11. Investors remain focused on iPhone penetration globally and the anticipated launch of the next generation iPhone in the fall; iPad adoption; market share growth of the Mac business as well as the upcoming refresh; the introduction of the anticipated Apple TV set; and platforms such as Siri, iAd and iBooks. Shares of Apple trade at 9.2x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).J.P. Morgan Analyst Says The Apple TV Isn’t Coming Any Time Soon (Fortune)
Mike Moskowitz at J.P. Morgan says that his “research does not indicate any looming TV-related product launch, and our model does not incorporate any potential impact from a TV device at this time.” He goes on to say that “any product entry will be measured in years, not quarters.” Years? That’s not good. Moskowitz is the first mainstream Apple analyst to take a firm stand against the imminent launch of what others are calling iTV. Interestingly, he thinks Apple’s next big thing might be a mobile payment service he has dubbed iPay.
Apple Takes Nearly Three-Fourths Of The Mobile Phone Profits (Asymco)
During the first quarter this year HTC, RIM and Nokia all surprised investors with bad news. The effect is evident in the share price of these companies which, in the case of RIM and Nokia is around book value, and in the case of HTC, neared 12 month lows and a 70% drop from peak. The new market disruption is evidenced by the shift of fortunes to Apple and Samsung and away from every other device maker. Of the vendors tracked (public companies who report mobile phone divisional performance), Apple obtained 73% of operating profits, Samsung 26% and HTC 1%. Together, Apple and Samsung have locked up 99% of the profits.
Apple Would Have To Make $500 Million Investment In Liquidmetal (Business Insider)
Atakan Peker, one of the inventors of Liquidmetal, spoke with Business Insider regarding the product’s future in mobile gadgets. Specifically, he estimates “that Apple will likely spend on the order of $300 million to $500 million — and three to five years — to mature the technology before it can used in large scale.” He also expects “Apple to use this technology in a breakthrough product. Such product will likely bring an innovative user interface and industrial design together, and will also be very difficult to copy or duplicate with other material technologies. He says a ton of other cool things.
Android Tablets Stumble In The First Quarter, Apple Gains (IDC)
A steep drop in shipments of Android-based tablets offset a strong quarter from Apple and caused the media tablet market to miss projections for the first quarter of 2012, according to preliminary data from IDC. Total worldwide media tablet shipments for the quarter reached 17.4 million units or 1.2 million units below IDC’s quarterly projection. Apple shipped 11.8 million iPads during the quarter, down from 15.4 million units in the fourth quarter of 2011, and grew its worldwide share from 55% to 68%.
Target Booting Amazon’s Kindles From Stores (Reuters)
Target will stop selling Amazon’s Kindle devices, including the Kindle Fire, its range of Kindle e-readers and all accessories for the devices such as covers and chargers. “This is evidence that Target is getting more serious about Amazon as an enemy rather than a partner,” said Matt Nemer, an analyst at Wells Fargo. Target’s move comes as the retailer outfits some of its stores with special displays of Apple products, including the iPad. What Apple really needs is Walmart.